The World Bank expects economic growth across 11 Pacific Island countries to weaken to 2.8% in 2026, down from 3.2% in 2025, as higher energy and shipping costs, slowing tourism momentum, and persistent structural constraints weigh on activity. In the World Bank’s Pacific Economic Update released on Tuesday, the agency said growth in the Pacific Island countries it tracks slowed to an estimated 3.2% in 2024 and 2025, down from 6.5% in 2023, before edging up to 3.1% in 2027. “The Pacific is clearly the region we think will be most affected among regions that are not directly involved in the conflict,” said Ekaterine Vashakmadze, a senior country economist at the World Bank, in an interview, as reported by Reuters. The World Bank said the near-term outlook had deteriorated as conflict in the Middle East pushed up fuel, freight, and insurance costs, adding renewed pressure on import-dependent Pacific economies.